Most of the ore deposits on Earth are the direct result of formation by hydrothermal solutions. Analogous mineral concentrations do not occur on the Moon, however, because of the absence of water. Stratified ore deposits form in layered instrusives on Earth due to fractional crystallization of magma and crystal settling of high-density minerals, particularly chromium in the mineral chromite. We have evaluated the possibility of such mineral deposition on the Moon, based upon considerations of 'particle settling velocities' in lunar vs. terrestrial magmas. A first approximation of Stoke's Law would seem to indicate that the lower lunar gravity (1/6 terrestrial) would result in slower crystal settling on the Moon. However, the viscosity of the silicate melt is the most important factor affecting the settling velocity. The viscosities of typical lunar basaltic melts are 10-100 times less than their terrestrial analogs. These lower viscosities result from two factors: (1) lunar basaltic melts are typically higher in FeO and lower in Al2O3, Na2O, and K2O than terrestrial melts; and (2) lunar igneous melts and phase equilibria tend to be 100-150 C higher than terrestrial, largely because of the general paucity of water and other volatile phases on the Moon. Therefore, particle settling velocities on the Moon are 5-10 times greater than those on Earth. It is highly probable that stratiform ore deposits similar to those on Earth exist on the Moon. The most likely ore minerals involved are chromite, ilmenite, and native FeNi metal. In addition, the greater settling velocities of periodotite in lunar magmas indicate that the buoyancy effects of the melt are less than on Earth. Consequently, the possibility is considerably less than on Earth of deep-seated volcanism transporting upper mantle/lower crustal xenoliths to the surface of the Moon, such as occurs in kimberlites on Earth.